UK-based shippers OT Africa Line (OTAL) and Delmas UK are among a host of international shipping companies that have been forced to add a war risk insurance surcharge on their Ivory Coast routes.
The move followed the decision by insurers Lloyds to add the Ivory Coast to its list of “excluded” areas because of instability in the country, resulting in a premiums increase.
A curfew has been operating in the nation’s capital Abidjan between midnight and 6am.
An OTAL spokesperson said: “They have a curfew so that obviously covers the port as well. It’s a bit unstable. We are having to pass these added premiums onto the customer, we have no other option.”
The surcharge levied by OTAL and sister company Delmas is £45 per 20ft container going southbound from the UK to the ports of Abidjan and San Pedro and £19 going north.
Timber products are one of the commodities carried on the routes. Delmas reports increasing timber business from both ports over the past six months, with iroko, sapele and framere the main species carried.
Meanwhile, the steady rise in oil prices was halted by the start of the Iraq war, with prices initially suffering a collapse.
“We intend to remove the fuel surcharge as soon as the market stabilises” |
Rix Baltic Lines |
Rix Baltic Lines, which added a surcharge of £2/m3 or tonne of cargo on March 12, says it is monitoring the situation. A spokesperson said the price of marine gas oil was very volatile.
He said: “We intend to remove the fuel surcharge as soon as the market stabilises.”
Peter Millatt, managing director of Scotline Ltd, added: “I do not think there is a shortage of oil. It’s pure speculation.”